Will Expanding Stablecoin Settlements Shift Visa’s (V) Long-Term Growth and Diversification Narrative?

• Earlier this week, Visa announced the expansion of its stablecoin settlement capabilities across Central and Eastern Europe, Middle East, and Africa through a collaboration with Aquanow, aiming to streamline cross-border transactions using approved stablecoins like USDC on its payments network.
• This move underscores Visa's efforts to digitize the backend of money movement and meet strong institutional demand for faster, more cost-effective settlement year-round.
• We will explore how Visa’s expansion into stablecoin settlements could shape its long-term growth narrative and diversification strategy.

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Visa Investment Narrative Recap

To own Visa shares, investors need to believe in the resilience of global electronic payments and Visa’s ability to stay ahead of evolving digital payment methods. While the stablecoin settlement expansion reflects Visa’s ongoing adaptation to new technologies, the short-term catalyst continues to be the company’s success in building out cross-border payment capabilities. The most significant risk remains the threat of alternative real-time payment systems eroding Visa's long-term transaction fee revenue, but the recent news does not appear to materially change this risk at this stage.

Among other recent announcements, Visa's rollout of Visa Fleet 2.0 with OpenWay is particularly relevant, showing how Visa continues to diversify beyond traditional card transactions into new payment platforms. This helps reinforce Visa’s position in fast-changing segments and broadens its service mix, which could be important as cross-border and B2B payment volumes grow.

But even as Visa innovates and integrates stablecoin technology, investors should be mindful of the real potential for alternative real-time payment infrastructures to reduce the...

Read the full narrative on Visa (it's free!)

Visa's narrative projects $51.9 billion in revenue and $27.5 billion in earnings by 2028. This requires 10.1% annual revenue growth and a $7.4 billion increase in earnings from $20.1 billion today.

Uncover how Visa's forecasts yield a $391.46 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 31 fair value estimates for Visa, ranging from US$338.22 to US$451.54 per share. With stablecoin adoption accelerating, your outlook on Visa’s network resilience could make all the difference, see how others compare their views.

Explore 31 other fair value estimates on Visa - why the stock might be worth as much as 35% more than the current price!

Build Your Own Visa Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Visa research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Visa research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Visa's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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